31 October 2003
The government's regional policy is too weak to reverse the North-South divide and only slow progress is being made against the limited targets set, according to an influential think-tank.
The Institute for Public Policy Research argues that ministers should use next year's Spending Review to set an 'unambiguous' target to narrow regional disparities in output per head.
A report published by the institute on October 30 calls on the government to do much more to tackle gaps in regional economic performance.
It argues that ministers should place as much emphasis on employment as on productivity, and warns that the focus on skills shortages and welfare-to-work programmes is not enough to tackle high unemployment in poorer regions.
Instead, it says, more high-quality jobs need to be created to attract graduates. In London, 31% of workers have a degree, but only 19% in the Northeast.
The report criticises the services available to smaller businesses as being 'impossibly complex', and says these should be rationalised and controlled by Regional Development Agencies.
Controversially, it also says prosperous regions should 'bear more of the costs of success', through schemes such as a tax on land values.
John Adams, director of IPPR North and co-author of the report, said: 'The current targets are simply aiming to reduce the gap in growth rates between the regions.'
PFoct2003
